Characteristics: there are many buyers anf seller are independent of each other, all commodity exchange unit is regarded as similar, there is nothing to obstruct the entry and exit the market.Cost: there is a competition in cost, companies have to accept the price that are still competitive in the market. If the price too high compared to average price, it will lose customers.Revenue: there isn’t limited to total revenue of a company in the perfect competition market. The company received similar marginal revenue from the sale each additional unit of products; the same price of products. Profit maximazation: commodity prices on a perfect competition market, which is formed by the relationship between supply and demand in the market. Competitive firms are price takers, they will sell their products at the market price. Although how much the number of firms sold, they also get a fixed price for the products they sell outPricing decision: If there is a profit in the short term, other businesses joined. If a loss in the short term some companies to exit from the sector
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